Political risk insurance and its effectiveness in supporting private sector investment in fragile states

Fragile states are unable to attract the private sector investment which is needed for economic development in large part because of high levels of political risk faced by investors. This paper investigates the role political risk insurance (PRI) plays in mitigating political risk and encouraging investment in fragile states. It analyses the private and public market for PRI in fragile states and makes recommendations for how it could be strengthened.